Modern Diagnostic and Research Centre shares are commanding a premium of up to 18 percent in the grey market as the company’s initial public offering (IPO) received strong investor response on the final day of bidding on Friday.
According to platforms tracking unofficial market activity, the grey market premium (GMP) for the issue was in the range of 15–18 percent. Investorgain quoted a GMP of Rs 16 per share, indicating a potential listing gain of 17.78 percent, while IPO Watch placed the premium at around 15.56 percent.
The Gurugram-based pathology and radiology testing services provider’s IPO was subscribed more than 350 times on January 2, the final day of bidding. The issue was fully subscribed on the first day itself, with a subscription of about 5.5 times on December 31.
The Rs 37-crore IPO had a price band of Rs 85–90 per share.
Ahead of the public issue, the company raised Rs 10.45 crore on December 30 by allotting 11.61 lakh shares to nine anchor investors, including 360 ONE Prime, Aarth AIF Growth Fund, Sunrise Investment Trust, Ekamya Pragati Scheme, Mastergrowth 369 Focused Equity Fund and Nine Alps Opportunity Fund.
Incorporated in 2012, Modern Diagnostic operates 21 centres, including 18 laboratories and three diagnostic centres, across eight states.
The company plans to use Rs 20.7 crore from the IPO proceeds to purchase medical equipment for its diagnostic centres and laboratories. About Rs 8 crore will be used for working capital requirements, Rs 1 crore for repayment of certain borrowings, and the remaining amount for general corporate purposes.
It also plans to expand its operations by upgrading existing facilities and opening a new diagnostic centre in Lucknow and six laboratories in Delhi, Meerut, Kanpur, Aligarh and Chandigarh, as per the red herring prospectus.
Shares are expected to be allotted by January 5 through registrar Link Intime India Pvt Ltd, while the listing is scheduled for January 7 on the SME platform of the BSE.
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